Adani Power’s Q3 loss widens to Rs1,288 crore
Ahmedabad: Adani Power Ltd on Wednesday said consolidated loss for the third quarter ended 31 December widened to Rs1,288 crore from Rs670 crore a year ago.
Total consolidated revenue fell to Rs4,916 crore in the October-December quarter from Rs5,491 crore a year ago, the company said in a media release.
“We expect to receive coal linkages under the SHAKTI scheme for the Tiroda and Kawai plants in the near future, which will help reduce fuel costs and improve profitability of these projects. Under-recovery of fuel costs for Mundra project have impacted its financial viability, and we are in dialogue with key stakeholders for an early solution,” Adani Power chairman Gautam Adani said in the statement.
The average plant load factor (PLF) in the third quarter was 58%, against 69% in Q3FY17.
The lower PLF was a result of lower domestic coal availability at Tiroda and Kawai and forced outage at Udupi, as well as scheduled maintenance, Adani Power said.
The Adani Power board also approved setting up of a 1600 megawatt (MW) thermal power project at Godda, Jharkhand, by its subsidiary company Adani Power (Jharkhand) Ltd, at an estimated project cost of approximately Rs13,450 crore.
The project is expected to achieve commercial operation by May 2022, and supply power to the Bangladesh Power Development Board under a power purchase agreement (PPA) for net capacity of 1,496 MW for 25 years. All major statutory clearances have been obtained for the project, it said.
Adani Power is India’s largest private sector power producer with an operating capacity of 10,440 MW. Its 4620 MW plant at Mundra, Gujarat, is the largest single-location coal based power plant in the country.
On Wednesday, Adani Power said it has received all approvals required under the Scheme of Arrangement approved by National Company Law Tribunal (NCLT). As a result, the Scheme of Arrangement for the transfer of the 4,620 MW Mundra Power Generation Undertaking to Adani Power (Mundra) Ltd, a subsidiary of the company, has been made effective during the quarter, it said on Wednesday.
Last year, Adani Power had offered to sell 51% in the Mundra unit to Gujarat Urja Vikas Nigam Ltd (GUVNL) for a token Re1. Adani Power has been supplying bulk power to GUVNL in Gujarat and has signed long-term PPAs in this regard with GUVNL—the state-owned power distributor.
Adani Power’s decision to sell stake in the 4,620 MW Mundra power project came after a Supreme Court order which disallowed compensatory tariff for the plant.
On 7 June, Adani Power said in a BSE filing that the company board had approved the slump sale of the Mundra plant to its subsidiary Adani Power (Mundra) Ltd. This was done in an attempt to attract funding in the separated entity for capacity expansion. The transaction “will put Mundra undertaking at par with the other operating subsidiaries of the company, with specific strategic focus as well as specific financial arrangements”, the company had said in its June filing last year.